Bank reconciliation LO P3 Wright Company deposits all cash receipts on the day w

Question

Bank reconciliation LO P3 Wright Company deposits all cash receipts on the day when they are received and it makes all cash payments by check. At the close of business on May 31, 2013, its Cash account shows a $28,900 debit balance. The company's May 31 bank statement shows $27,200 on deposit in the bank. The May 31 bank statement included a $170 debit memorandum for bank services; the company has not yet recorded the cost of these services. Outstanding checks as of May 31 total $6,300. May 31 cash receipts of $6,900 were placed in the bank's night depository after banking hours and were not recorded on the May 31 bank statement. In reviewing the bank statement, a $470 check written by Smith Company was mistakenly drawn against Wright's account. A debit memorandum for $460 refers to a 4460 NSF check from a customer; the company has not yet recorded this NSF check. Prepare a bank reconciliation for the company using the above information.

Explanation / Answer

Cash acount balance          28,900 bank account balance      27,200 debit memorandum for bank services -             170 Outstanding checks -      6,300 night depositry         6,900 check mistakenly drawn -             470 check from customer            460 total balance          28,260      28,260

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